LIC told to pay for cut in surrendered policy

Ramkrishan Upadhyay

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Chandigarh, July 27

The District Consumer Disputes Redressal Commission, Chandigarh, has directed the LIC of India to pay a compensation of Rs 8,000 to a city resident for not releasing full premium amount in respect of a surrendered policy.

The commission also directed LIC to pay Rs 7,000 litigation costs and the remaining amount of Rs 41,922 to the complainant with 9 per cent interest.

Avtar Singh of Sector 38 West, in his complaint, said he had purchased a policy commencing from July 28, 2012. The maturity amount was Rs 91,248. He surrendered the policy on December 3, 2020, and requested LIC to pay the premium paid up to the date of surrender.

He alleged the LIC transferred Rs 49,326 in full and final settlement on December 8, 2021, whereas a total of Rs 81,700 premium was paid.

On approaching LIC, it said the complainant was duly informed about the loss in amount in case of surrender. Denying any deficiency on its part, LIC denied all allegations made in the complaint. After hearing the arguments, the commission directed LIC to pay the remaining Rs 41,922 to the complainant with 9 per cent interest.